What happens if bitcoin price falls below the cost of mining it?

indrakusumaindra

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Quote from: Indra32 on February 02, 2018, 11:46:14 PM

Quote from: Bitcoinbelowmine on February 02, 2018, 11:28:52 PM

Would bitcoin be able to recover? Are we safe since 80% of bitcoin has already been mined?

I remember it happened once in 2011 (https://www.themarysue.com/price-bitcoin-falls-below-mining/amp/).

the possibility of investors and bitcoin enthusiasts will race to buy bitcoin for the mine and hope that someday bitcoin prices can skyrocket so they earn a significant profit when the price spike occurs

But i think when its happening there will be such a chaos in use of bitcoin and it even might make the price getting down more futher. The only things that can help market to grow is the real use case such as a blockchain use and also transaction of cryptocurrency.

Tervelatuk

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Quote from: tailwate07 on October 11, 2018, 06:29:46 AM

Quote from: Bitcoinbelowmine on February 02, 2018, 11:28:52 PM

Would bitcoin be able to recover? Are we safe since 80% of bitcoin has already been mined?

I remember it happened once in 2011 (https://www.themarysue.com/price-bitcoin-falls-below-mining/amp/).

Lol, I’m not expecting that to happen, cause if it does happen, it will make a lot of miners to drop out and stop their mining. They wouldn’t be profiting from it and there wouldn’t be much miners left, so that might make the difficulty to increase. Although someone here said something good about it– he said it will make it possible for people to be able to mine Bitcoin with their laptops, although I don’t know if that’s true.

when all miner go out , no more bitcoin trascation confirmed and finally failed.with less miner, bitcoin transaction speed could be slower.and make people think this is not suitable anymore to replace fiat.

hokkaidoola

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At the present time, when the value of Bitcoin is decreasing but not much, we can expect that in the last few months of 2018, Bitcoin will have a boom in terms of value. But if they really fall below the price of digging, it is likely that diggers will stop digging but instead, they may become one of the investors in the world. Because they have a lot of experience in trading and exchanging them

tailwate07

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Quote from: Bitcoinbelowmine on February 02, 2018, 11:28:52 PM

Would bitcoin be able to recover? Are we safe since 80% of bitcoin has already been mined?

I remember it happened once in 2011 (https://www.themarysue.com/price-bitcoin-falls-below-mining/amp/).

Lol, I’m not expecting that to happen, cause if it does happen, it will make a lot of miners to drop out and stop their mining. They wouldn’t be profiting from it and there wouldn’t be much miners left, so that might make the difficulty to increase. Although someone here said something good about it– he said it will make it possible for people to be able to mine Bitcoin with their laptops, although I don’t know if that’s true.

ipanks

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I think the mining process will stop unless the price can bounce up in shortly so the mining will not stop. But I don't think that the price will fall too deep because the miner will not let this is happening and I am sure that many people especially the big whales will hold the price to not down for more. For now, I think the miner is not getting many rewards from bitcoin mining and they still trying to survive in this conditions, and they support bitcoin so the price will increase later.

squog

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Then I'd guess no one will mine it any more. I'd be guessing that since Bitcoin has already been mined, everyone else would just stick to trading bitcoin and eventually becomes more stable for adoption and would be used for what is it intenteye to be, a currency to exchange goods and services with

Friskaadew

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Quote from: Bitcoinbelowmine on February 02, 2018, 11:28:52 PM

Would bitcoin be able to recover? Are we safe since 80% of bitcoin has already been mined?

I remember it happened once in 2011 (https://www.themarysue.com/price-bitcoin-falls-below-mining/amp/).

this is my question so far, maybe in my opinion people will really leave BTC because of what we know to mine BTC we really need very large electricity, and of course our electricity bill will be very expensive, and not to mention operational and maintenance costs in the event of damage, but to date mining btc is still profitable and profitable so I think for now it is still safe

anjho.ace

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There are many projects for that.
there are ongoing like the lightning network.
mining will not be a problem.
well i dont see bitcoin will go lower on price again.
we have seen less than a thousand value last year and it will not happen again.

Blondieture

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If that happens, the price of Bitcoin would fall dramatically because a lot of miners will exit and sell their BTC.

PlusOne88

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The mining fee should not be higher than the actual value. Granting you are correct how can anybody use the coin when they have to pay more than the real value? Should mining fee become costly, it is for certain that the value of coins should even be higher than that otherwise bitcoin will be of no use to its users. And who will then mine without users? So the existence of one is always relative to the other. These things should be in harmony otherwise everything stops.

Sedocoindev

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Quote from: Bitcoinbelowmine on February 02, 2018, 11:28:52 PM

Would bitcoin be able to recover? Are we safe since 80% of bitcoin has already been mined?

I remember it happened once in 2011 (https://www.themarysue.com/price-bitcoin-falls-below-mining/amp/).

I don't think this will happen. We already witnessed similar situation. We have to be patient and bitcoin recover.

btc_angela

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Quote from: Simsonie on October 08, 2018, 04:11:18 AM

It seems to me that bitcoin miner will stop mining bitcoin because the cost of energy for mining is really expensive, they can not deal with it.

You do have some back up to your claims? Did you check the hash rate and cost of mining a bitcoin today? Are you a miner? LMAO, again you are a complete troll. Do you think its more profitable for bitcoin miners to shift to lets say BCH and mine it?

vasilev456

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I think that such a situation can not arise, because Bitcoin is obliged to pay for itself, so mining costs will not fall below this!

Simsonie

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It seems to me that bitcoin miner will stop mining bitcoin because the cost of energy for mining is really expensive, they can not deal with it.

ripthesystem

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In this case, could low profitability of mining new block be countered by increased transaction fee?
After all, the point of mining if not only to add new blocks, but to maintain the network`s infrastructure.

Whosdaddy

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Quote from: maxman190 on October 02, 2018, 08:25:44 AM

Even if the production is unprofitable in connection with the price , people will still produce it, because everyone is sure that the price will be normalized and everything will pay off.

There is a general rule in economics that you stop production if your fixed cost is not met. This case of low price below the mining cost is the same case and in such a situation, the miner will stop mining because to minimize the loss.

But we might not reach such a state so early as this will hamper the supply of Bitcoin which will be a loss of value. The cost of electricity used in mining is very high and in China, they use solar panels for the process and this way maximizes their profit in future.

bajigur894784

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The Bitcoin mining can be unprofitable. And if the percentage of good miners stops, then the number of transaction/block solvers would reduce. And then sending bitcoin will take more time and be more expensive. So this is the basic scenario.

But, mining costs around the world vary greatly, so it is possible that mining can shift to various regions where the price is cheap. Liquidity will also be affected, because miners may not sell below their costs so that it will function as a natural price floor. But in the end, 1 BTC is still 1 BTC, and most people who mine do not really care about short-term price volatility, so they will only continue to accumulate it.

odolvlobo

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Quote from: JimmyJeri on October 04, 2018, 04:14:11 AM

I don't think bitcoin price will fall below the cost of mining it because if bitcoin mining cost more than its price, miner will stop mine bitcoin

As miners stop mining due to a low price, the cost of mining goes down such that the price remains higher than the cost. Is that what you mean?

upsidedown75

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Quote from: Mihaylovic on September 30, 2018, 02:39:06 PM

i dpnt think it is possible in short term. but if it happens, some miners give up mining and difficulty decreases. so remaining miners keep mining with a less mining cost due to lower difficulty. this system has its own internal balance.

Anything can be possible in the short term and even though we may think this could not be possible, it still does not mean that it cannot happen at all. We have seen this happen before and we may still see it happen again and for the fact that new and more effective miners are now being produced, I want to assume, no matter what, things should still work out normally for the bigger players in the mining industry and if the price reduces below mining cost, absolutely, this is something that would not pay small miners in the short term and may want to bail out temporarily.

JimmyJeri

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I don't think bitcoin price will fall below the cost of mining it because if bitcoin mining cost more than its price, miner will stop mine bitcoin

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